Crime Watch: August 9, 2013

 
California Man Sentenced to Thirty Months in Prison for Filing a Fraudulent Tax Return and Mail Fraud
 
Jose Antonio Sanchez, formerly of Pacoima, California, was sentenced August 5 to thirty months in prison, three years of supervised release, and ordered to pay $1,678,300 in restitution to Federal Insurance Company and for filing a false tax return and mail fraud. 
 
On March 26, 2013, Sanchez, a former mail clerk for ACCO Engineered Systems (AES) headquarters, pleaded guilty to mail fraud and filing a false federal income tax return in a scheme to defraud money and property from AES. Sanchez was arrested by federal agents following his indictment on April 11, 2011. Sanchez resigned shortly after his scheme was discovered.
 
According to the court documents, between at least 2004 and 2008, Sanchez used his position to order copier supplies, using an AES "open" purchase order, in the name of AES from Xerox companies and directed Xerox to deliver the copier supplies to other non-AES locations. Xerox mailed invoices to AES to obtain payment for the supplies. As a result of his scheme, AES spent at least $1,678,300 for supplies that it never received and for which it had no use. The loss incurred by AES was eventually reimbursed by its insurer, Federal Insurance Company. 
 
In furtherance of the scheme, Sanchez told AES' accounts payable and/or purchasing personnel that AES received the supplies and that AES should pay the invoices. AES mailed checks to Xerox to pay the invoices. Without AES' knowledge or consent, Sanchez sold the supplies and used the proceeds of the sales for his own benefit. 
 
According to the plea agreement, Sanchez caused at least sixteen invoices issued by Xerox and checks totaling over $159,000 issued by AES to be mailed by the US Postal Service. 
 
According to the plea agreement, Sanchez filed four false federal Individual Income Tax Return Forms 1040 for the 2005, 2006, 2007, and 2008 calendar years by failing to report the proceeds of his scheme. Between 2004 and 2008, A Toner Warehouse paid him $593,360 for the supplies, for which he failed to report any of the proceeds of the sales on his federal income tax returns. As a result of his scheme, Sanchez caused the IRS to incur a tax loss of $136,360.00.
 
Source: US Attorney's Office - California
 
###
 
North Carolina Man Pleads Guilty to Tax Fraud Charges 
 
Larry D. Hill Jr., pleaded guilty to one count of conspiring to submit false claims for federal income tax refunds to the IRS and one count of filing a false 2010 federal income tax return.
Between 2010 and 2012, authorities say Hill and his coconspirators filed more than 2,000 federal income tax returns for Hill's Tax Service customers. Hill claimed more than $14 million in tax refunds during that time.
 
According to the US Department of Justice, Hill personally collected, on average, $1,000 or more from each tax refund. If convicted, Hill faces a maximum of thirteen years in prison, a $500,000 fine, four years of supervised release, and $200 in special assessments.
 
Source: US Attorney's Office - North Carolina
 

Already a member? log in here.

Editor's Choice

Upcoming CPE Webinars

Dec 3The materials discuss the concepts and principles in the AICPA’s new special purpose framework.
Dec 8Kristen Rampe will cover how to diffuse the tension in challenging situations in this one-hour webinar.
Dec 9A key component to improving your firm’s workflow efficiency while enhancing your profitability at the same time is how you leverage emerging technologies.
Dec 16Kristen Rampe will give tips on how to bring confidence into the room and build a valuable network.